Ikeja Hotel reports N785m six-month loss

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Hospitality firm, Ikeja Hotel Plc has witnessed a decline in its earnings for the first six months of the year, ended June 30, 2020.

This was disclosed in the unaudited group accounts forwarded by the firm to the Nigerian Stock Exchange (NSE).

Ikeja Hotel recorded a 50% revenue decline of N2.9bn for the first six months of 2020 compared to the N5.8bn recorded in the first half of 2019.

The coy recorded N177.4m as gross profit in the first half of the year as against N1.4bn recorded in the corresponding period of 2019, representing 87.7% drop.

Part of the statement read:

“The Loss after Tax of ₦785.9 million recorded by the group in the half-year Financial Statements for the period ended June 30, 2020, was due to the negative impact of the COVID-19 pandemic on the hospitality industry”.

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“The Company will respond appropriately to reduce this negative impact significantly and improve the fortunes of the Company as the Government further relaxes COVID-19 pandemic regulations and allows resumption of International flights.”

It recorded an operating loss of 356m for the first six months of the year, compared to an operating profit of N728m in the first half the year.

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It also recorded a loss before tax of 777m in the first half of the year, compared to a profit of N341m in a similar period of 2019.

More checks in the financial statements showed that the group recorded less revenue for rooms booked for the last six months.

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The results showed that the firm recorded N1.7bn for the first six months of 2020, against N3.5bn recorded in the first six months of the previous year.

The NSE had in November 2016 suspended trading in the shares of the company “to safeguard the investments of shareholders of Ikeja Hotel Plc following the continued dispute between the major shareholders which had negatively impacted on the company’s governance structure”.

In May 2018, it was reported that the Nigerian capital market apex regulator, the Security and Exchange Commission, dissolved the Board of Directors of the company due to the unresolved internal crisis involving some majority shareholders of the company.

Trading in the shares of Ikeja Hotel Plc resumed later following the lifting of the suspension placed on it by the Nigerian bourse.

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Ikeja Hotel reports N785m six-month loss

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Ikeja Hotel reports N785m six-month loss - Brand SpurIkeja Hotel reports N785m six-month loss - Brand Spur

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Ikeja Hotel reports N785m six-month loss - Brand SpurIkeja Hotel reports N785m six-month loss - Brand Spur

Latest News

Singapore Employees Lack Retirement Support From Companies While Financial Wellbeing Becomes a Top Priority: Aon Survey

SINGAPORE - Media OutReach - 14 April 2021 - Aon plc (NYSE: AON), a leading global professional services firm providing a broad range of risk, retirement and health solutions, has released the findings of the 2021 Trends in Retirement & Financial Wellbeing survey for Singapore.

Working adults in Singapore ranked retirement planning as their top priority but an alarming 80% underestimate how much they really need to retire. While retirement support from employers is also lacking, further challenges remain around transparency in group retirement plans' investment offerings and employees foregoing long-term perspectives to seek short-term gains.

Ashley Palmer, Regional Managing Partner, Retirement & Investments, Asia for Aon, said, ""Employers can have a significant impact on how much their employees save by instilling smart habits and healthy money behaviours. The right long-term savings vehicles, effective communications and financial tools will help Singapore's workforce be more financially resilient in the wake of the COVID-19 pandemic."

The survey identifies three main themes in financial wellbeing and retirement support for Singapore employees.

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Financial wellbeing support is the new employee expectation. As a result, close to 40% of employers rank an employee financial wellbeing strategy as their highest priority, followed by emotional and mental wellbeing support. The survey shows that 70% of Singapore employers will formulate or execute financial wellbeing programmes throughout 2021, in line with employee expectations. Companies also view offering a financial wellbeing programme critical in increasing employee engagement and remaining competitive in the talent market.

There is an increasing trend of employer-led supplementary savings plans. Currently, 22% of companies surveyed offer Central Provident Fund (CPF) top-up contributions to citizens and Permanent Residents. But, close to 40% of the working population in Singapore are foreigners who do not have access to CPF and are likely to have foregone their retirement benefits in their home countries. To bridge this gap, and to provide equitable retirement benefits to all employee groups, close to 50% of the organisations surveyed offer supplementary retirement benefits to their foreign staff. Financial services firms are leading in this practice, followed by the technology and the healthcare sectors.

Promisingly, a third of organisations in Singapore are prioritising a thorough review of their supplementary retirement arrangements in 2021.

Alicia Brittain, Senior Consultant & Actuary, Retirement & Investments, Singapore for Aon, said, "Forward-looking companies first need to understand the financial worries of their employees and identify the gaps in their benefits offering. The most effective approaches are aimed at changing individual behaviours towards money and savings and providing accessible programmes and vehicles to deliver sustainable change. For example, when organisations provide retirement benefits as cash-in-lieu, it is most likely immediately spent and so does not form part of an emergency fund or long-term savings for the employees' retirement years. Supplementary retirement plans solve this issue and are more flexible and cost effective - and can also offer contributions above the monthly CPF wage cap to increase employee savings."

Employees in Singapore lack a well-defined default investment strategy. Less than 30% of the surveyed companies in Singapore currently offer their employees an investment choice in their retirement plans, and only 15% of retirement plans have a default investment fund. This leads to employees selecting their own optimal investment funds. They may lack experience in understanding investments, which can lead to misallocating their money and result in inadequate retirement savings or excessive risk taking.

Brittain added, "The key to protecting employees and adding value to savings in any defined contribution retirement plan is a well-defined default investment strategy. This includes frequent performance monitoring, actively managing investment risks and dynamically reducing investment risk as employees move towards retirement."

Notes to Editors

The Aon 2021 Trends in Retirement & Financial Wellbeing for Singapore survey was designed to help organisations understand the unique retirement and financial needs of their Singapore workforce. This tri-annual survey was completed by organisations with employee populations ranging from five to over 4,000 and are based in Singapore. Responding Rewards and Benefits Leaders, HR and Finance Professionals provided feedback and insight on their organisations' financial wellbeing and retirement programmes, interests and concerns. Click here for the full report.

About Aon

Aon plc (NYSE: AON) is a leading global professional services firm providing a broad range of risk, retirement and health solutions. Our 50,000 colleagues in 120 countries empower results for clients by using proprietary data and analytics to deliver insights that reduce volatility and improve performance.

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Ikeja Hotel reports N785m six-month loss - Brand Spur
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